Manny purchased a $$2,000$ bond that paid interest at $5\mathrm{.}75\%$ compounded semi$-$annually.

bond is redeemable in $1$ year $6$ months and is purchased to yield $5\%.$

a$)$ Find the purchase price of the bond.

BGN$/$END

C$/$Y

PV

PMT

b$)$ Calculate the premium or discount.

$1$

c$)$ Construct the appropriate amortization of premium or accumulation of discount bond schedule, including the totals.

Payment

Interval

Bond

Interest

Interest on

Book Value at

Yield

Premium

Amortized or

Discount

Accumulated

Book

Value